Core Viewpoint - The FOF market is expected to experience a strong recovery in 2025, with over 80 new funds launched and a total fundraising scale of 800 billion yuan, highlighting the increasing importance of multi-asset allocation for clients [1] Multi-Asset Allocation Core - Multi-asset allocation emphasizes diversification across various asset types, including global equity markets and flexible fixed income investments, as well as commodities and alternative investments [3] - The core of multi-asset allocation lies in understanding macroeconomic and industry cycles, along with risk control capabilities, which are dynamic rather than static [3][5] Multi-Strategy Approach - Multi-strategy provides another dimension to multi-asset allocation, with common strategies including CPPI, risk parity, and macro allocation strategies [4] - The essence of multi-asset allocation is to seek heterogeneous returns and risk sources to reduce volatility and risk [5] Sources of Returns in Multi-Asset Allocation - Returns from multi-asset allocation can be broken down into two core dimensions: the ability to grasp trends in individual asset categories and top-down macro allocation capabilities [8] - For equities, understanding industry trends and cycles is crucial, while fixed income requires a comprehensive assessment of macro variables like interest rate risk and economic growth [8] Effective Multi-Asset Allocation - Effective multi-asset allocation should focus on diversifying into heterogeneous assets like bonds and gold to lower portfolio volatility and risk [12] - It is essential to conduct sector rebalancing based on different industry and economic cycle characteristics, as well as asset price-performance ratios [12]